Mortgage Rate Forecast: June 2009

 
What the Mortgage Backed Securities Market is Doing Today:

The FNMA 30 Year 5.0% Coupon opened this morning up 4/32 from Friday's close to 101.94.

The price of the FNMA 30-Year 5.0% coupon closed down 3/32 from its opening on Friday to 101.83 (as shown by the white line). The MBS was up as much as 8/32 this morning, but is currently trading up 3/32 to 101.92 (as shown by the blue line). Remember, on mortgage backed securities (MBSs), as the price goes up, the yield goes down - and mortgage interest rates go down with it. I expect that mortgage rates will be the same if not 0.125% better in price today as compared to Friday's close.

Economic Reports Being Released Today:

• There are no economic reports scheduled for release today.

Important News of the Day:

Today is a relatively quiet day. Mortgage backed securities (and mortgage interest rates) will be driven by the bond markets and the money flow today.

There are five economic reports scheduled for release this holiday shortened week, but four of them are considered only fairly important. And of those four reports, the employment situation report is considered the most important. There are no economic reports scheduled for release on Monday, and the markets are closed on Friday. Look for more details on this week's economic data releases and events on my Weekly Mortgage Market Watch at www.LewCorcoran.com/MyBlog.

What Happening With Mortgage Rates Today:

Moderate Volatility. Overall, we can expect to see some volatility in the markets and in mortgage rates on Tuesday and Wednesday. However, we could see high volatility on Thursday. The reasons are: 1) the report on the rate of unemployment will be released in the morning; and 2) trading in afternoon will probably be light as traders leave early for the long weekend. I recommend that you maintain contact with your mortgage professional this week if you're still floating an interest rate and are getting close to settlement.

In addition, the spring and summer home buying season is upon us. Mortgage rates historically climb this time of year before peaking in July or August. If you haven't locked in a rate yet, then you may want to consider doing so. Floating is making more sense in the short term right now as the markets recover from the dramatic sell off the last couple of weeks, but the ever increasing massive government debt and fears of inflationary pressures could soon drive rates up again. So, if you like the rate that you are being offered today, then there's nothing wrong with locking in. Otherwise keep an eye on the markets and maintain contact with your mortgage professional. The markets can change at any moment.

My Interest Rate Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

• Float if my closing was taking place within 7 days
• Float if my closing was taking place within 8 and 30 days
• Float if my closing was taking place between 31 and 60 days
• Float if my closing was taking place over 60 days from now

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of any or all other borrowers. See today's mortgage rates at www.LewCorcoran.com/RateSheet.

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	Lew Corcoran, Sr. Mortgage Consultant Reverse Mortgages / FHA Loans / VA Loans USDA Rural Development Loans on Cape Cod and in Massachusetts Save on closing costs when you apply for a mortgage online ActiveRain Blog / Localism Mortgage Rate Forecast / New England Properties

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Before I begin, let me say that I think we can resolve this Home Valuation Code of Conduct (HVCC) method of odering appraisals. You can take it for what it's worth - just two cents - or perhaps we can openly discuss any ramifications such a proposal may have on the industry, on issues that I may have missed, and/or by providing alternative solutions either by adding, amending and.or deleting some of the provisions that I thought of. Perhaps, by a committee of responsible and appropriately licensed professionals as well as thoughts from the general public, we can find a common ground that we agree would work in the better if not best interest of all.

First and foremost, I would like to see the HVCC in its present form abolished completely. Don't get me wrong. I believe that changes are needed, but to institute a system that mirros the same setup that WAMU had with AMCs - the exact same setup Attorney General Andrew Cuomo of NY said caused this mess and who then crammed down our throats - is not the answer. I won't get into all the reasons why it should be abolished - I think we all already know.

I propose that we go back to the old way of doing business (wait, wait - hear me out on this!) but with a proviso - that a section be added to the appraisal report where the appraiser is to note whether or not he (or she) was unduly coerced or influenced by a broker, lender or real estate estate agent into coming up with any certain value for a property. FNMA, Freddie Mac, US Dept of HUD, USDA and the VA should impose underwriting requirements that state that if the appraiser notes undue influence and/or coercion in any way, shape or form from any broker, lender and/or real estate agent and/or home buyer and/or home owner, then that particular appraisal is not to be accepted. Period. End of discussion. Get another appraiser and keep your mouth shut if you to purchase, refinance or sell your home or get paid on the loan or get paid on the transaction. It will certainly be an expensive lesson if you didn't keep your mouth shut the first time around.

However, nothing should preclude a real estate agent (both buyer's agents and listing agents) or home owner from presenting comps (by way of a comparative market analysis or CMA) to give to the appraiser so as to show how they may have arrived at their estimate of value PROVIDED further that they do not in any other way try to influence or coerce the appraiser on his expert opinion as to the home's present market value. The appraiser should be free to consider in whole or in part, or to reject completely, the comps provided.

For home owners looking to refinance, home buyers looking to purchase, and home owners looking to sell, they should be required to sign a disclosure (yeah, I know, yet another disclosure, but such are the times we live in) that they attest that they have not nor will in any way attempt to influence or coerce an appraiser to assign any particular value on the property.

As we're all licensed (at least all appraisers and real estate agents are, and soon all loan officers - no matter who they're employed by (including federally chartered banks) or what state they're located in), the regulators who have jurisdiction over each respective license can institute an enforcement hearing looking to impose penalties that may include a written admonishment, civil penalties (only judges can impose fines), suspension of license or revocation of license (depending on the nature of coercion and/or the number of times involved in such coercion), and the same shall be made part of their permanent license record. (Try and get another job in the field with THAT on your record!)

Loan officers and real estate agents should still be permitted to select the appraisers with whom they have established working relationships, and who otherwise do good work and who are resposive to their customers (excepting of course any influence or coercion). And, just as licensed loan officers and real estate agents are to be held accountable for their actions, so should the appraisers. Appraisers, as well as loan officers, should be required to take courses in ethics and attend periodic refreshers and exams in same as real estate agents must do as member of the National Assocation of Realtors (NAR). Appraisers should also be permitted to decline any work from any lender he or she does not feel comfortable with without fear of reprisal (i.e., black listing) by other lenders.

Probably needs some tweeking, but at least it would be a step in the right direction. Just my 2 cents worth....   -- Lew

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	Lew Corcoran, Sr. Mortgage Consultant Reverse Mortgages / FHA Loans / VA Loans USDA Rural Development Loans on Cape Cod and in Massachusetts Save on closing costs when you apply for a mortgage online ActiveRain Blog / Localism Mortgage Rate Forecast / New England Properties

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What the Mortgage Backed Securities Market is Doing Today:

The FNMA 30 Year 5.0% Coupon opened this morning up 2/32 from yesterday's close to 101.98 before falling on better than expected economic reports.

The price of the FNMA 30-Year 5.0% coupon closed up 20/32 from its opening yesterday to 101.92 (as shown by the white line). The MBS was down as much as 6/32 this morning, but is currently trading up 2/32 to 101.97 (as shown by the blue line). Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage interest rates. I expect that mortgage rates will be 0.125% - 0.25% worse in price today as compared to yesterday's close, but might improve in this afternoon's trading.

Economic Reports Being Released Today:

• Personal Income and Outlays for Report May - This report provides an indication of the consumer's ability to spend as well as their current spending activity. The report revealed a 1.4% increase in income and a 0.3% increase in spending. Analysts were expecting to see an increase of 0.4% in income and a 0.3% rise in the spending portion of the report. The income portion of the report came in much larger than expected while the spending portion came in about as expected. However, the increase is due primarily to less taxes withheld from payrolls and higher limits on unemployment. This report had a slight negative impact on mortgage backed securities (falling prices and rising rates).
  
  
• University of Michigan's Index of Consumer Sentiment for May - The index revealed a reading of 70.8, and was expected to provide a reading of 69.7. The reading is up from 69.0 the previous month. This indicates that consumers were more optimistic about their own financial situations than earlier thought. That also had a negative impact on bonds because rising sentiment usually means consumers are more apt to make large purchases in the near future which will increase economic activity and could potentially lead to inflation.

Important News of the Day:

Demand for $27 billion in the 7-Year note came in strong yesterday which helped boost bond prices during the afternoon trading hours. It also helped ease some concerns about the supply of debt being sold by the Fed.

Next week could be yet another active week for the markets that may influence mortgage pricing. There are several reports due out between Tuesday and Thursday next week, with one of them being the monthly Employment report. Look for more details on this week's economic data releases and events on my Weekly Mortgage Market Watch at www.LewCorcoran.com/MyBlog.

What Happening With Mortgage Rates Today:

High Volatility. Overall, the busiest days of the week are behind us, but the volatility is not over for bonds and mortgage rates. The market is ripe for profit takers, and there is a pretty good possibility of seeing mortgage rates changing this afternoon. So please proceed cautiously if you're still floating an interest rate and maintain contact with your mortgage professional.

In addition, the spring and summer home buying season is upon us. Mortgage rates historically climb this time of year before peaking in July or August. If you haven't locked in a rate yet, then you may want to consider doing so. Floating is making more sense in the short term right now as the markets recover from the dramatic sell off the last couple of weeks, but the ever increasing massive government debt and fears of inflationary pressures could soon drive rates up again. So, if you like the rate that you are being offered today, then there's nothing wrong with locking in. Otherwise keep an eye on the markets and maintain contact with your mortgage professional. The markets can change at any moment.

My Interest Rate Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

• Float if my closing was taking place within 7 days
• Float if my closing was taking place within 8 and 30 days
• Float if my closing was taking place between 31 and 60 days
• Float if my closing was taking place over 60 days from now

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of any or all other borrowers. See today's mortgage rates at www.LewCorcoran.com/RateSheet.

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	Lew Corcoran, Sr. Mortgage Consultant Reverse Mortgages / FHA Loans / VA Loans USDA Rural Development Loans on Cape Cod and in Massachusetts Save on closing costs when you apply for a mortgage online ActiveRain Blog / Localism Mortgage Rate Forecast / New England Properties

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What the Mortgage Backed Securities Market is Doing Today:

The FNMA 30 Year 5.0% Coupon opened this morning up 3/32 from yesterday's close to 101.39 on worse than expected jobless claims.

The price of the FNMA 30-Year 5.0% coupon closed down 1/32 from its opening yesterday to 101.30 (as shown by the white line). MBS is currently trading up 12/32 to 101.67 (as shown by the blue line). Remember, on mortgage backed securities (MBSs), as the price goes up, the yield goes down - and mortgage interest rates go down with it. I expect that mortgage rates will be 0.125% - 0.25% better in price today as compared to yesterday.

Economic Reports Being Released Today:

• Final Reading to the 1st Quarter GDP - The final reading revealed an annualized 5.5% decline in GDP, and is largely as expected - economists predicted the final reading would show a 5.7% decline. The GDP data is quite aged now (covers January through March) and will likely have little impact on today's bond market or mortgage pricing.
  
  
• Jobless Claims - There were 627,000 new claims filed for unemployment last week, more that the 613,000 new claims analysts predicted. This is the second straight week that unemployment rose. Continuing claims for unemployment rose to 6.738 million. This indicates that it's taking more time for the jobless to find work, and some are either finding work or have exhausted their unemployment benefits. With more people unemployed, the threat of wage based inflation is subdued. Employers do not have to pay higher wages to attract new employees during high unemployment times as people will be happy just to have a job. However, this data is generally considered not to be of high importance to the bond or the mortgage backed securities markets.
  
  
• Fed's MBS Purchase Program - The results of this week's purchases of mortgage backed securities (MBSs) by the Feds will be released in the afternoon. As of last Thursday, the Feds have purchased over $576 billion in MBSs. The Feds plan on purchasing up to $1.25 trillion in MBSs through December 31st.

Important News of the Day:

Demand for $37 billion in the 5-Year note came in fairly strong yesterday. The bid-to-cover ration, at 2.5, was stronger than the past few 5-Year note auctions, but had minimal impact on mortgage rates. The Feds will be auctioning the 7-Year note today. If today's auction is met with a strong demand, bond prices could and mortgage rates fall during afternoon trading hours. But, if the auctions are met with lackluster demand, bond prices may fall and mortgage rates will rise in afternoon trading.

There are a number of economic reports scheduled for release this week that may influence mortgage pricing. Look for more details on this week's economic data releases and events on my Weekly Mortgage Market Watch at www.LewCorcoran.com/MyBlog.

What Happening With Mortgage Rates Today:

High Volatility. Overall, the busiest day for bonds and mortgage rates for the remainder of the week is today with the government's auction of the 7-Year note. There is a pretty good possibility of seeing mortgage rates changing this afternoon, so please proceed cautiously if you're still floating an interest rate and maintain contact with your mortgage professional.

In addition, the spring and summer home buying season is upon us. Mortgage rates historically climb this time of year before peaking in July or August. If you haven't locked in a rate yet, then you may want to consider doing so. Floating is making more sense in the short term right now as the markets recover from the dramatic sell off the last couple of weeks, but the ever increasing massive government debt and fears of inflationary pressures could soon drive rates up again. So, if you like the rate that you are being offered today, then there's nothing wrong with locking in. Otherwise keep an eye on the markets and maintain contact with your mortgage professional. The markets can change at any moment.

My Interest Rate Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

• Float if my closing was taking place within 7 days
• Float if my closing was taking place within 8 and 30 days
• Float if my closing was taking place between 31 and 60 days
• Float if my closing was taking place over 60 days from now

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of any or all other borrowers. See today's mortgage rates at www.LewCorcoran.com/RateSheet.

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	Lew Corcoran, Sr. Mortgage Consultant Reverse Mortgages / FHA Loans / VA Loans USDA Rural Development Loans on Cape Cod and in Massachusetts Save on closing costs when you apply for a mortgage online ActiveRain Blog / Localism Mortgage Rate Forecast / New England Properties

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WEDNESDAY AFTERNOON UPDATE:

The price of the FNMA 30-Year 5.0% coupon is currently trading down 1/32 at 101.30 (as shown by the blue line). Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage interest rates. You might have seen a slight improvement in the pricing of mortgage rates earlier today, and in many cases that improvement has been withdrawn. I expect that mortgage rates will be essentially close at the same level as it was when they opened this morning.

Both the stock and bond markets reacted negatively to the news that the Federal Open Market Committee (FOMC) meeting adjourned with no change in the key short-term interest rates. Mortgage backed securities didn't react as negatively as the stock and bond markets did. The statement that was released this afternoon indicated that the economy is still weakening, but the rate at which it is weakening is slowing. The Fed also said that they expect "inflation will remain subdued for some time." The news about inflation remaining subdued helped mortgage backed securities to not react as negatively as the rest of the market.

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	Lew Corcoran, Sr. Mortgage Consultant Reverse Mortgages / FHA Loans / VA Loans USDA Rural Development Loans on Cape Cod and in Massachusetts Save on closing costs when you apply for a mortgage online ActiveRain Blog / Localism Mortgage Rate Forecast / New England Properties

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What the Mortgage Backed Securities Market is Doing Today:

The FNMA 5.0 Coupon opened this morning down 2/32 from yesterday's close to 101.27, and was down as much as 4/32, on better than expected durable goods orders report.

The price of the FNMA 30-Year 5.0 coupon closed up 1/32 from its opening yesterday to 101.33 (as shown by the white line). MBS is currently trading down 4/32 to 101.20 (as shown by the blue line). Remember, on mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage interest rates. I expect that mortgage rates will be essentially be the same in price today as compared to yesterday, and are waiting for the FOMC announcement this afternoon.

Economic Reports Being Released Today:

• Durable Goods Orders Report for May - Orders for durable goods came in much better than expected with a 1.8% gain. Analysts were expecting a decline of 0.5% in new orders from April to May. This follows a 1.8% decline in April. Recently, orders for durable goods vary widely from month to month. Year-to-year, however, overall durable goods orders is still down 23.3%. This report provides an indication of the strength in the manufacturing sector of the economy. A larger than expected increase is yet another sign that the recession may be easing, and will drive bond prices down which in turn will lead to higher yields and higher mortgage interest rates.
  
  
• New Home Sales Report for May - Sales of new homes fell 0.6% from the previous month to an annualized rate of 342,000 which is 23,000 less than the 365,000 analysts were expecting. Meanwhile, the median price of new homes rose 4.2% to $221,600. There's still a 10.2 month supply of new homes on the market. Similar to the Existing Home Sales report, this report provides us with the sales volume of newly constructed homes. Like the Existing Home Sale Report yesterday, this report is not expected to have much of an impact on the bond market or mortgage interest rates.
  
  
• FOMC Meeting - The Federal Open Market Committee (FOMC) will adjourn this afternoon. It is widely expected that the Federal Reserve (the Fed) will emphasize that the economy is still weak, and that they will keep the key short-term interest rates at the current level of 0% - 0.25%. Analysts do not expect the Fed to increase its purchases of Treasuries and mortgage backed securities over the previously set commitments, which is $300 billion for Treasuries and $1.25 trillion for MBSs. The post meeting statement, to be released at 2:15pm today, could, however, create volatility in the markets.

Important News of the Day:

Demand for $40 billion in the 2-Year note came in very strong yesterday. The bid-to-cover ration, at 3.21, was the strongest in 2 years, but had minimal impact on mortgage rates. The Feds will be auctioning the 5-Year note today and the 7-Year note tomorrow. Mortgage rates will most likely be impacted by the auctions today and tomorrow. If they are met with a strong demand, bond prices could and mortgage rates fall during afternoon trading hours. But, if the auctions are met with lackluster demand, bond prices may fall and mortgage rates will rise in afternoon trading.

There are a number of economic reports scheduled for release this week that may influence mortgage pricing. Look for more details on this week's economic data releases and events on my Weekly Mortgage Market Watch at www.LewCorcoran.com/MyBlog.

What Happening With Mortgage Rates Today:

High Volatility. Overall, the busiest days of the week for bonds and mortgage rates will be today and tomorrow. Traders will be focusing on the minutes of the FOMC meeting this afternoon as well as the government's auctions of T-bills, notes and bonds. There is a pretty good possibility of seeing mortgage rates changing this afternoon, so please proceed cautiously if you're still floating an interest rate and maintain contact with your mortgage professional.

In addition, the spring and summer home buying season is upon us. Mortgage rates historically climb this time of year before peaking in July or August. If you haven't locked in a rate yet, then you may want to consider doing so. Floating is making more sense in the short term right now as the markets recover from the dramatic sell off the last couple of weeks, but the ever increasing massive government debt and fears of inflationary pressures could soon drive rates up again. So, if you like the rate that you are being offered today, then there's nothing wrong with locking in. Otherwise keep an eye on the markets and maintain contact with your mortgage professional. The markets can change at any moment.

My Interest Rate Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

• Float if my closing was taking place within 7 days
• Float if my closing was taking place within 8 and 30 days
• Float if my closing was taking place between 31 and 60 days
• Float if my closing was taking place over 60 days from now

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of any or all other borrowers. See today's mortgage rates at www.LewCorcoran.com/RateSheet.

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	Lew Corcoran, Sr. Mortgage Consultant Reverse Mortgages / FHA Loans / VA Loans USDA Rural Development Loans on Cape Cod and in Massachusetts Save on closing costs when you apply for a mortgage online ActiveRain Blog / Localism Mortgage Rate Forecast / New England Properties

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Massachusetts Asbestos Prevention & Green Options for Homeowners
by Jesse Herman
Mesothelioma Cancer Center

Highly regarded through the greater part of the 20th century, asbestos is a fibrous mineral that was used as insulation for piping, roofing and flooring in homes. Its flame resistant and highly durable qualities made it the ideal choice for industries.

Often appearing in roof shingles, popcorn ceilings, piping and insulation, manufacturers were aware of its toxic qualities; this information was repressed from homeowners, workers and military personnel. Thousands of innocent civilians were wrongfully exposed to asbestos as a result.

When involved in real estate mortgage situations, it is especially important to embark on the proper inspections to insure the safety of your clients, building workers and your reputation. Problems with asbestos in older buildings should be addressed in a rational manner. A good course of action is to identify materials which could harvest asbestos, mark the condition and establish a plan that addresses any negative condition in the building.

Homes constructed prior to 1980 may still contain asbestos. This should not make you overly concerned because asbestos exposure can be avoidable by taking simple precautions. Many healthy green alternatives exist which make the use of asbestos an obsolete building material.

Long term exposure to asbestos may lead to the development of a rare but severe lung ailment known as malignant mesothelioma. Due to the fact many mesothelioma symptoms are similar to less serious ailments, diagnosis is one of the more difficult tasks physicians encounter.

Healthy Tips

Removal of asbestos in public facilities, workplaces and homes should be performed by licensed abatement contractors as long as the National Emissions Standards for Hazardous Air Pollutants (NESHAP) are not violated. They must wear protective equipment such as masks and gloves to avoid any exposure. The materials should be removed in as large pieces as possible and places in disposable bags. 

 "Green" home modifications will help save on energy costs and provide tax credits, but some of them may even be better for your health. If asbestos is removed, green forms of insulation should be used as replacements. These include the use implementation of recycled building materials such as lcynene foam, cotton fiber and cellulose.

For example, the use of cotton fiber foam has demonstrated to reduce energy costs by 25 % per year. As education and technology of green sustainable practices increase, the numbers will continue to rise. Recently, congress passed the American Recovery and Reinvestment Act into law. Included in this act were extensions to the tax incentives placed for energy efficiency in 2005, as well as new credits for homeowners who remodel or build using eco-sustainable methods. Existing homes are eligible for a series of efficiency measures that pertain to the home shell (Insulation, Windows, Sealing) worth 30% of the installed cost (materials only, labor is not included in the credit basis).

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	Lew Corcoran, Sr. Mortgage Consultant Reverse Mortgages / FHA Loans / VA Loans USDA Rural Development Loans on Cape Cod and in Massachusetts Save on closing costs when you apply for a mortgage online ActiveRain Blog / Localism Mortgage Rate Forecast / New England Properties

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What the Mortgage Backed Securities Market is Doing Today:

The FNMA 5.0 Coupon opened down 5/32 this morning from yesterday's close to 101.17 and was down as much as 8/32 before recovering after the release of after worse than expected economic data this morning.

The price of the FNMA 30-Year 5.0 coupon closed up 11/32 from its opening yesterday to 101.31 (as shown by the white line). MBS is currently trading down 1/32 to 101.28 (as shown by the blue line). Remember, mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage interest rates. I expect that mortgage rates will be more costly by 0.125 - 0.25 in discount points today as compared to yesterday. However, lenders may improve pricing by 0.125 - 0.25 in discount points this afternoon.

Economic Reports Being Released Today:

• Existing Home Sales Report for May - Existing home sales increased by 2.4% last month to an annualized rate of 4.77 million, but was less than expected. Analysts forecasted the report would reveal an annualized of 4.85 million. Home sales were down 3.4% last month. The median prices of homes are up by 3.8%; however, the year-to-year prices of homes are down 16.8%. This report, released by the National Association of Realtors, helps us measure the strength in the housing market as well as mortgage credit demand. The report is not expected to have much of an impact on the bond market or mortgage interest rates.

Important News of the Day:

The Feds will be auctioning $104 billion in new T-bills, notes and bonds every day week except Friday. Mortgage rates will most likely be impacted by the auctions on Wednesday and Thursdays. If they are met with a strong demand, bond prices could and mortgage rates fall during afternoon trading hours. But, if the auction are met with lackluster demand, bond prices may fall and mortgage rates will rise in afternoon trading.

The Federal Open Market Committee (FOMC) begins today and will adjourn tomorrow afternoon. It is expected that Ben Bernanke will keep the key short-term interest rates at the current level of 0% - 0.25%. However, the post meeting statement, to be released at 2:15pm on Wednesday, could create volatility in the markets.

There are a number of economic reports scheduled for release this week that may influence mortgage pricing. Look for more details on this week's economic data releases and events on my Weekly Mortgage Market Watch.

What Happening With Mortgage Rates Today:

High Volatility. Overall, the busiest days of the week for bonds and mortgage rates will be Wednesday and Thursday. Traders will be focusing on the minutes of the FOMC meeting Wednesday afternoon as well as the government's auctions of T-bills, notes and bonds. There is a pretty good possibility of seeing mortgage rates continue to change today, so please proceed cautiously if you're still floating an interest rate.

In addition, the spring and summer home buying season is upon us. Mortgage rates historically climb this time of year before peaking in July or August. If you haven't locked in a rate yet, then you may want to consider doing so. Floating is making more sense in the short term right now as the markets recover from the dramatic sell off the last couple of weeks, but the ever increasing massive government debt and fears of inflationary pressures could soon drive rates up again. So, if you like the rate that you are being offered today, then there's nothing wrong with locking in. Otherwise keep an eye on the markets and maintain contact with your mortgage professional. The markets can change at any moment.

My Interest Rate Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

• Float if my closing was taking place within 7 days
• Float if my closing was taking place within 8 and 30 days
• Float if my closing was taking place between 31 and 60 days
• Float if my closing was taking place over 60 days from now

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of any or all other borrowers. See today's mortgage rates at www.LewCorcoran.com/RateSheet.

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	Lew Corcoran, Sr. Mortgage Consultant Reverse Mortgages / FHA Loans / VA Loans USDA Rural Development Loans on Cape Cod and in Massachusetts Save on closing costs when you apply for a mortgage online ActiveRain Blog / Localism Mortgage Rate Forecast / New England Properties

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 What the Mortgage Backed Securities Market is Doing Today:

The FNMA 5.0 Coupon opened as high as 11/32 this morning from Friday's close to 101.30 on a weekend World Bank report news that the recession will be deeper  later this year then it was earlier this year, and the world's economy will retract by 2.9%.

The price of the FNMA 30-Year 5.0 coupon closed up 11/32 from its opening on Friday to 100.95 (as shown by the white line). MBS is currently trading up 11/32 to 101.28 (as shown by the blue line). Remember, mortgage backed securities (MBSs), as the price goes up, the yield goes down - and mortgage interest rates go down with it. I expect that mortgage rates will be 0.125 - 0.25 in discount points cheaper today as compared to Friday.

Economic Reports Being Released Today:

• There are no economic reports scheduled for release today.

Important News of the Day:

The Feds will be auctioning $104 billion in new T-bills, notes and bonds every day week except Friday. Mortgage rates will most likely be impacted by the auctions on Wednesday and Thursdays. If they are met with a strong demand, bond prices could and mortgage rates fall during afternoon trading hours. But, if the auction are met with lackluster demand, bond prices may fall and mortgage rates will rise in afternoon trading.

The Federal Open Market Committee (FOMC) begins tomorrow and will adjourn Wednesday afternoon. It is expected that Ben Bernanke will keep the key short-term interest rates at the current level. However, the post meeting statement, to be released at 2:15pm on Wednesday, could create volatility in the markets.

There are a number of economic reports scheduled for release this week that may influence mortgage pricing. Look for more details on this week's economic data releases and events on my Weekly Mortgage Market Watch.

What Happening With Mortgage Rates Today:

High Volatility. Overall, the busiest days of the week for bonds and mortgage rates will be Wednesday and Thursday. Traders will be focusing on the minutes of the FOMC meeting Wednesday afternoon as well as the government's auctions of T-bills, notes and bonds. There is a pretty good possibility of seeing mortgage rates continue to change today, so please proceed cautiously if you're still floating an interest rate.

In addition, the spring and summer home buying season is upon us. Mortgage rates historically climb this time of year before peaking in July or August. If you haven't locked in a rate yet, then you may want to consider doing so. Floating is making more sense in the short term right now as the markets recover from the dramatic sell off the last couple of weeks, but the ever increasing massive government debt and fears of inflationary pressures could soon drive rates up again. So, if you like the rate that you are being offered today, then there's nothing wrong with locking in. Otherwise keep an eye on the markets and maintain contact with your mortgage professional. The markets can change at any moment.

My Interest Rate Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

• Float if my closing was taking place within 7 days
• Float if my closing was taking place within 8 and 30 days
• Float if my closing was taking place between 31 and 60 days
• Float if my closing was taking place over 60 days from now

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of any or all other borrowers. See today's mortgage rates at www.LewCorcoran.com/RateSheet.

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	Lew Corcoran, Sr. Mortgage Consultant Reverse Mortgages / FHA Loans / VA Loans USDA Rural Development Loans on Cape Cod and in Massachusetts Save on closing costs when you apply for a mortgage online ActiveRain Blog / Localism Mortgage Rate Forecast / New England Properties

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 What the Mortgage Backed Securities Market is Doing Today:

The FNMA 5.0 Coupon initially opened down 1/32 from yesterday's close to 100.58 on an otherwise quiet day.

The price of the FNMA 30-Year 5.0 coupon closed down 28/32 (as shown by the white line) from its opening yesterday to 100.61, and was down as much as another 8/32 this morning. MBS is currently trading up 4/32 (as shown by the blue line) to 100.73. Remember, mortgage backed securities (MBSs), as the price goes down, the yield goes up - and so do mortgage interest rates. I expect that mortgage rates will be more costly by 0.25 - 0.5 in discount points today as compared to yesterday.

Economic Reports Being Released Today:

• There are no economic reports scheduled for release today.

Important News of the Day:

It's a fairly quiet day as there are no economic reports or major speeches about the economy. That means mortgage backed securities will be heavily influenced by the 10 year treasury and the stock markets today. As almost always on Fridays, prices of MBSs typically fall and yields (and mortgage rates rise) heading into the weekend.

Today is also "quadruple witching Friday." Quadruple witching Friday occurs once a quarter and marks the expiration of equity options, index options, single stock futures and index futures. It may help to avoid wild swings in trading today.

There are a number of economic data scheduled for release next week that may influence mortgage pricing. Traders are also readying for the auction of government bonds next week as well as the release of the minutes of the Federal Open Market Committee (FOMC) next Wednesday afternoon - all of which may affect bond trading and mortgage rates. Look for more details on next week's economic data releases and events on my Weekly Mortgage Market Watch on Monday.

What Happening With Mortgage Rates Today:

High Volatility. Overall, the busiest days of the week for bonds and mortgage rates are now behind us. Traders will now begin focusing on the government's auctions of T-bills, notes and bonds next week. There is a pretty good possibility of seeing mortgage rates continue to change today, so please proceed cautiously if you're still floating an interest rate.

In addition, the spring and summer home buying season is upon us. Mortgage rates historically climb this time of year before peaking in July or August. If you haven't locked in a rate yet, then you may want to consider doing so. Floating is making more sense in the short term right now as the markets recover from the dramatic sell off the last couple of weeks, but the ever increasing massive government debt and fears of inflationary pressures could soon drive rates up again. So, if you like the rate that you are being offered today, then there's nothing wrong with locking in. Otherwise keep an eye on the markets and maintain contact with your mortgage professional. The markets can change at any moment.

My Interest Rate Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

• Lock if my closing was taking place within 7 days
• Float if my closing was taking place within 8 and 30 days
• Float if my closing was taking place between 31 and 60 days
• Float if my closing was taking place over 60 days from now

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of any or all other borrowers. See today's mortgage rates at www.LewCorcoran.com/RateSheet.

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	Lew Corcoran, Sr. Mortgage Consultant Reverse Mortgages / FHA Loans / VA Loans USDA Rural Development Loans on Cape Cod and in Massachusetts Save on closing costs when you apply for a mortgage online ActiveRain Blog / Localism Mortgage Rate Forecast / New England Properties

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